AUD/USD: Even balance between 0.7139 and 0.7217
Yesterday’s signals were not triggered as none of the key levels identified were reached yet.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be taken between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.7131 or 0.7121.
- Put the stop loss 1 pip below the lowest recent price.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade Ideas
- Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.7217 or 0.7255.
- Place the stop loss 1 pip above the highest recent price.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
I wrote yesterday that it seemed as if bulls and bears were evenly matched, with strong support at 0.7139 and key resistance overhead at 0.7217. I thought that this area was likely to hold over the course of the day, so I was interested in a short trade from a bearish reversal at 0.7217 or a bullish reversal from 0.7139.
This was a good call as the levels did hold, in fact they were not even reached, although there was no profit in this.
Forex markets are generally consolidating which is typical for the month of August. The data release schedule is very empty which is contributing to this situation.
I think the key levels will again hold over the course of today and will be more powerful still as none were hit yesterday.
Therefore, I am ready to take a long trade from a bullish bounce off 0.7139 or a short trade from a bearish bounce off 0.7217.
There is nothing of high importance due today concerning either the USD or the AUD.